NOTICE OF PARTIAL REDEMPTION TO THE HOLDERS OF

POWER AUTHORITY OF THE STATE OF NEW YORK

General Purpose Bonds, Series W

        NOTICE IS HEREBY GIVEN that, pursuant to the applicable provisions of the governing documents of the above captioned bonds (the “Bonds”), $33,915,000 principal amount of the Bonds will be redeemed on January 1, 2007, at the referenced Redemption Price, together with interest accrued to January 1, 2007. From and after January 1, 2007, interest on the Bonds shall cease to accrue.

        The following Bonds will be redeemed and paid upon presentation to the office(s) shown below.

*CUSIP Number: 649892WC6, 6.50%, Due: January 1, 2008

Redemption Price: 100.00%, Total Amount Called: $33,915,000

Registered Bonds called in the amount indicated below:

BALANC_486 ....$33,400,000	WR_70 ..................$5,000	WR_80................$10,000	WR_208 ................$5,000
WR_222....................$30,000	WR_223 ..............$20,000	WR_253..............$10,000	WR08_279 ............$5,000
WR08_314................$15,000	WR08_360 ..........$10,000	WR08_457............$5,000	WR08_462 ..........$10,000
WR08_471................$10,000	WR08_492 ..........$15,000	WR08_495............$5,000	WR08_496 ..........$70,000
WR08_498................$15,000	WR08_499 ..........$10,000	WR08_500..........$15,000	WR08_502 ..........$10,000
WR08_503................$10,000	WR08_505 ............$5,000	WR08_506..........$40,000	WR08_507 ..........$10,000
WR08_508................$25,000	WR08_512 ..........$10,000	WR08_513............$5,000	WR08_519 ..........$95,000
WR08_520................$35,000	WR-1_63 ..............$5,000

            Payment of the Bonds called for redemption will be made upon presentation and surrender of said Bonds, at the location shown below. In the case of any registered Bond to be redeemed in part only, upon presentation of such Bond for redemption, there will be issued in lieu of the unredeemed portion of the principal thereof a new registered Bond or Bonds in principal amount equal to such unredeemed portion.

Called Bonds should be presented as follows:

First Class/Registered/Certified Express                 Delivery Only                                                  By Hand Only

The Bank of New York                                               The Bank of New York                                   The Bank of New York

Global Corporate Trust                                                Global Corporate Trust                                   Global Corporate Trust

P.O. Box 2320                                                                2001 Bryan Street, 9th Floor                           4 New York Plaza - 1st Floor

Dallas, Texas 75221-2320                                            Dallas, Texas 75201                                          New York, NY 10004-2413

POWER AUTHORITY OF THE STATE OF NEW YORK

By: The Bank of New York

as Trustee

Bondholder Communications: 800-275-2048

Dated: November 22, 2006

IMPORTANT TAX INFORMATION

Under the provisions of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”),  paying agents making payments of interest or principal on municipal securities may be obligated to withhold a 28% tax from remittance to individuals who have failed to furnish the paying agent with a valid taxpayer identification number. Owners of the Bonds who wish to avoid the imposition of the tax should submit certified taxpayer identification numbers when presenting the Bonds for payment.

*NOTE: The Issuer and Trustee shall not be responsible for the use of the CUSIP numbers selected, nor is any representation made as to their correctness indicated in the notice or as printed on any Bond. They are included solely for the convenience of the holders.